Standard tax band to be raised by €2,600

Minister for Finance Brian Cowen has announced the standard rate income tax band will be raised by €2,600 a year.

It will mean a single person on €22,000 will gain €13.65 a week.

Employee tax credit is also being increased by €220 per year and the basic personal tax credit by €50 per year for single people and €100 per year for married couples.

"It will ensure all those on the current minimum wage will remain completely outside the tax net for 2006 and will remove from the tax net 52,000 low income tax payers that would otherwise be in the tax net next year," Mr Cowen said.